Live Commentary

GBP/USD flat at 1.3707 as Bostic signals only one Fed cut in 2025 and three in 2026. UK GDP expands 0.7% QoQ in Q1, fastest in a year; signs of demand cooling emerge. US–UK trade deal takes effect; focus shifts to Powell and Bailey speeches on Tuesday.

Gold price stabilizes on Monday, with the US Dollar steadying to start the week. The Trump administration moves ahead with the Big Beautiful tax Bill. XAU/USD remains below $3,300 with Thursday’s employment data and the US budget deficit in focus.

Pound Sterling clings to gains against US Dollar while Fed monitors tariff-impact on inflation

The Pound Sterling shows strength near 1.3650 against the US Dollar after the announcement of the Israel-Iran ceasefire. Fed’s Powell states that the central bank still needs time to assess the impact of tariffs on inflation. BoE’s Bailey expresses concerns over easing labor market strength.

The Euro remains steady near over three-year highs against the US Dollar, supported by a moderate risk appetite. Weak US data and higher hopes of Fed interest rate cuts are weighing on the US Dollar. EUR/USD maintains its positive tone with resistance at 1.1630-1.1640 and 1.1700.